Which of the Following Is True

Which of the following is true?

A) There are two approaches for determining a transfer price: cost-based and market-based.
B) If a cost-based transfer price is used, the transfer price must be based on variable cost.
C) A problem with a cost-based transfer price is that it does not provide adequate incentive for the selling division to control costs.
D) The market-based transfer price approach produces a higher total contribution margin to the company than the cost-based approach.